I overpaid my payroll taxes and want to apply the overpayment to the next liability period. How do I do that?

Hi michelle-tellwel,

Welcome to Community!  Ensuring your payroll remittances are accurate and paid on time is key in keeping your accounts aligned.  When an overpayment occurs, the Canada Revenue Agency will provide you with a credit notice.  QuickBooks Online Payroll enables you to resolve some payroll tax overpayments, so your reports and tax forms are accurate.  I'd be glad to help!

Payroll tax overpayments can occur if; 

• One or more paycheques were voided or deleted after a tax payment was made
• You made a duplicate tax payment in the same liability period

Here's how to resolve the overpayment in QuickBooks; 

1. From the left menu, go to Taxes and select Payroll tax

2. Select Pay in the Actions column

3. Review the breakdown in the Federal Taxes section and hit Record payment  

Note; Overpayments appear as negative amounts.

Should you require additional assistance, please reach out to an accounting professional.  They'll be able to provide their expertise and best course of action.  If you don't have an accountant, we can help you locate a ProAdvisor in our local area.

Feel free to reach back out, if you have any other questions.  We'd be happy to assist!